Judy Greffin, former chief investment officer of Allstate Corp., had her bonus cut in half before announcing her retirement from the largest publicly traded U.S. home and auto insurer.
The money manager’s cash incentive award fell to $500,000 for 2015, from $1 million in 2014 and $1.4 million in 2013, the Northbrook, Ill.-based company said in a filing Monday. Her total pay dropped to $3.3 million from $4.8 million. Ms. Greffin’s bonus was 65 percent of her target.
Net investment income slipped 8.8% last year to $3.2 billion, partly because a unit sale reduced the size of the portfolio. The company also endured a decline in the basket of investments that includes private equity and real estate. There were $250 million of net realized capital losses in the fourth quarter, driven by energy-related holdings, compared with gains of $106 million in the year-earlier period.
Ms. Greffin retired on March 31, after helping diversify the company’s portfolio and steer the insurer through the financial crisis of 2008 and 2009. While at Allstate, she led a team of almost 300 professionals that managed about $78 billion. She agreed to provide consulting services to Allstate for a year after her retirement. Chief Financial Officer Steve Shebik is overseeing investments on an interim basis while Chief Executive Officer Tom Wilson seeks a replacement to carry out his strategy of seeking alternatives to bonds.
Mr. Wilson announced Ms. Greffin’s promotion to CIO in late 2008 after the company was burned by investment losses earlier that year.
She didn’t immediately respond to a message seeking comment through her LinkedIn account. Greg Burns, a spokesman for Allstate, declined to comment beyond the filing.
The CEO’s compensation was also cut in 2015 as the insurer slumped 12% in New York trading, the stock’s first decline after three straight years of advancing at least 29%. His package dropped 11% to $13.9 million.